U.S. Lawmakers Reveal Draft Data Privacy Bill

June 7, 2022

Several members of Congress have published a discussion draft of a bipartisan federal privacy bill.

The American Data Privacy and Protection Act would establish a national framework to protect consumer data privacy and security. It also would allow users to opt-out of targeted advertisements and sue internet companies that improperly sell their data, among other things.  

Click here to view the document section-by-section.

Senate Commerce, Science and Transportation Committee Ranking Member Roger Wicker (R-Miss.), House Energy and Commerce Chairman Frank Pallone (D-N.J.) and Ranking Member Cathy McMorris Rodgers (R-Wash.) drafted the bipartisan bill.

However, the draft bill is already facing some resistance from a few prominent Senate Democrats. Sen. Brian Schatz (D-HI), a lead negotiator in past privacy discussions on Capitol Hill, said the latest effort was “falling short” of protecting consumers.

Additionally, Senate Commerce, Science and Transportation Chairwoman Maria Cantwell (D-Wash.) expressed concern about the agreement and said any data privacy law needs to be robust and comprehensive and should “protect consumers’ personal data with a clear requirement that companies are accountable for the use of that data and must act in consumers’ best interests.”

ALTA remains engaged on this issue and is working with our Data Privacy Work Group to ensure the interests of the title insurance industry are represented in these ongoing discussions.

In 2020, ALTA developed a set of data privacy principles that recommend the development of a single, national standard to help protect consumer private information uniformly and consistently while maintaining an efficient homebuying and selling experience.

Key aspects of the principles include exemptions for entities already subject to the Gramm-Leach-Bliley Act, personal information that is already publicly available and business-to-business relationships. In addition, the standards say data privacy laws should recognize the need for businesses to share personal information needed complete a transaction. Consideration also should be given to the impact on small business, with respect to the cost of compliance relative to the risk of consumer harm, the principles say. Other aspects of the standards discuss data breach notifications, a safe harbor and the right to cure.

Contact ALTA at 202-296-3671 or communications@alta.org.